NVIDIA (NASDAQ:NVDA) Trading Down 3.9% Following Insider Selling

Key Points

• NVIDIA shares fell 3.9% after insider selling, with a significant drop in trading volume compared to average sessions.
• Director Dawn E. Hudson sold 90,000 shares between September 2nd and 3rd, resulting in a combined transaction value of over $15 million.
• Despite recent insider selling, several analysts have raised their price targets for NVIDIA, with a current consensus target price of $207.69 and a rating of "Moderate Buy."

NVIDIA Corporation (NASDAQ:NVDA - Get Free Report) shares fell 3.9% on Friday after an insider sold shares in the company. The company traded as low as $164.22 and last traded at $165.03. 96,847,358 shares changed hands during mid-day trading, a decline of 59% from the average session volume of 237,221,266 shares. The stock had previously closed at $171.66.

Specifically, Director Dawn E. Hudson sold 18,000 shares of the firm's stock in a transaction dated Wednesday, September 3rd. The stock was sold at an average price of $172.00, for a total transaction of $3,096,000.00. Following the completion of the transaction, the director directly owned 368,887 shares in the company, valued at $63,448,564. This trade represents a 4.65% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Dawn E. Hudson sold 72,000 shares of the firm's stock in a transaction dated Tuesday, September 2nd. The stock was sold at an average price of $170.63, for a total transaction of $12,285,360.00. Following the sale, the director owned 386,887 shares of the company's stock, valued at $66,014,528.81. This trade represents a 15.69% decrease in their position. The disclosure for this sale can be found here. In other news, CEO Jen Hsun Huang sold 75,000 shares of the firm's stock in a transaction dated Tuesday, September 2nd. The shares were sold at an average price of $169.65, for a total value of $12,723,750.00. Following the completion of the sale, the chief executive officer directly owned 72,698,366 shares of the company's stock, valued at approximately $12,333,277,791.90. This trade represents a 0.10% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website.

Analyst Upgrades and Downgrades

A number of analysts have commented on the stock. Morgan Stanley upped their target price on shares of NVIDIA from $206.00 to $210.00 and gave the company an "overweight" rating in a report on Thursday, August 28th. Wells Fargo & Company upped their price target on shares of NVIDIA from $185.00 to $220.00 and gave the company an "overweight" rating in a research note on Monday, August 11th. KeyCorp restated an "overweight" rating and set a $230.00 price target (up previously from $215.00) on shares of NVIDIA in a research report on Thursday, August 28th. Jefferies Financial Group raised their price target on shares of NVIDIA from $200.00 to $205.00 and gave the stock a "buy" rating in a research note on Thursday, August 28th. Finally, DA Davidson lifted their price objective on shares of NVIDIA from $135.00 to $195.00 and gave the company a "neutral" rating in a report on Thursday, August 28th. Four investment analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, NVIDIA currently has a consensus rating of "Moderate Buy" and a consensus target price of $207.69.

NVIDIA Stock Performance

The stock has a market capitalization of $4.03 trillion, a P/E ratio of 47.16, a PEG ratio of 1.24 and a beta of 2.10. The firm has a 50-day moving average of $172.55 and a 200 day moving average of $140.01. The company has a quick ratio of 3.60, a current ratio of 4.21 and a debt-to-equity ratio of 0.08.

NVIDIA (NASDAQ:NVDA - Get Free Report) last posted its earnings results on Wednesday, August 27th. The computer hardware maker reported $1.05 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.01 by $0.04. The company had revenue of $46.74 billion during the quarter, compared to analyst estimates of $45.65 billion. NVIDIA had a return on equity of 101.74% and a net margin of 52.41%.The company's revenue for the quarter was up 55.6% compared to the same quarter last year. During the same period in the previous year, the company earned $0.68 EPS. NVIDIA has set its Q3 2026 guidance at EPS. Research analysts anticipate that NVIDIA Corporation will post 2.77 EPS for the current fiscal year.

NVIDIA Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 2nd. Investors of record on Thursday, September 11th will be paid a dividend of $0.01 per share. The ex-dividend date of this dividend is Thursday, September 11th. This represents a $0.04 annualized dividend and a yield of 0.0%. NVIDIA's dividend payout ratio (DPR) is currently 1.14%.

Institutional Trading of NVIDIA

A number of hedge funds have recently bought and sold shares of NVDA. Harbor Asset Planning Inc. bought a new position in NVIDIA during the 2nd quarter valued at approximately $28,000. Winnow Wealth LLC purchased a new position in NVIDIA in the second quarter worth about $32,000. Longfellow Investment Management Co. LLC raised its stake in shares of NVIDIA by 47.9% during the second quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker's stock valued at $33,000 after acquiring an additional 67 shares in the last quarter. Spurstone Advisory Services LLC purchased a new position in NVIDIA during the second quarter valued at approximately $40,000. Finally, Kathleen S. Wright Associates Inc. grew its holdings in NVIDIA by 169.3% in the first quarter. Kathleen S. Wright Associates Inc. now owns 404 shares of the computer hardware maker's stock worth $44,000 after purchasing an additional 254 shares during the last quarter. 65.27% of the stock is currently owned by institutional investors.

NVIDIA Company Profile

NVIDIA Corporation provides graphics and compute and networking solutions in the United States, Taiwan, China, Hong Kong, and internationally. The Graphics segment offers GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU or vGPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems; and Omniverse software for building and operating metaverse and 3D internet applications.

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